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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: macavity who wrote (6177)	1/18/2001 3:30:51 PM
From: Louis V. Lambrecht	Respond to of 19219

mac - the Street always wins. But the MaxPain theory is based on the total premiums on a given date. Other similar theories are based on O/I only, others look at peaks above and below a strike price and call them supports. It would work, if MMs were stupidly sitting back and taking the orders. Somehow, these MM's will, as soon as an options contract is entered, offset that contract with another, or trade shares in such a way that their total position would be neutral. They have programs and computers doing just that at a mouse click. MM's source of income are the fees. I don't expect them to risk money. Remains that for a small amount of money, some peaks in open/interest can be made expiring worthless. Expiration dates: better print the calendar: cboe.com SPYDR, QQQ and others: some are European Style , some American Style Most indexes are Euro style cboe.com QQQ is a share cboe.com No simple rule, better download the symbold guide.